Guardian 2010

The GuardianTh F t f Hi h Ed tiThe Future of Higher Education

London11 March 2010

International Perspectives ono sp s oFunding Structures

Donald E. HellerDonald E. Heller

International trends in higher educationInternational trends in higher education

MassificationMassification

Shift from public to private sources of fundingShift from public to private sources of fundingShift from public to private sources of fundingShift from public to private sources of funding

Focus on quality assurance and the role of Focus on quality assurance and the role of higher education in serving society and the higher education in serving society and the economyeconomy

© 2010, Donald E. Heller© 2010, Donald E. Heller 22

Tertiary attainment ratesTertiary attainment rates

%

Population that has attained at least tertiary education (2007)Percentage, by age group

50

60

70%

55‐64 year‐old 25‐34 year‐old

30

40

0

10

20

Canada

Korea

an Fed

eration1

Japan

New

Zealand

Ireland

Norway

Israel

France

Belgium

Australia

United States

Den

mark

Swed

enFinland

Spain

United Kingdo

mNethe

rlands

Luxembo

urg

Switzerland

Estonia

OECD average

Iceland

Sloven

iaPo

land

Greece

Germany

Hun

gary

Portugal

Mexico

Austria

Italy

Chile2

Slovak Rep

ublic

Czech Re

public

Turkey

Brazil

33

Russia U S

1. Year of reference 2002 2. Year of reference 2004Countries are ranked in descending order of the percentage of 25-34 year-olds who have attained at least tertiary education.Source: OECD. Table A1.3a. See Annex 3 for notes (www.oecd.org/edu/eag2009).

© 2010, Donald E. Heller© 2010, Donald E. Heller

International studentsInternational students

Proportion of international students in tertiary education, 2007

14%

16%

18%

20%

8%

10%

12%

14%OECD Average

0%

2%

4%

6%

0%

Aust

ralia

Aust

ria

Belg

ium

Cana

da

h Re

publ

ic

Den

mar

k

Finl

and

Hun

gary

Icel

and

Irel

and

Japa

n

ethe

rland

s

w Z

eala

nd

Nor

way

k Re

publ

ic

Spai

n

Swed

en

witz

erla

nd

Kin

gdom

ted

Stat

es

Czec

h

Ne

New

Slov

ak Sw

Uni

ted

Uni

t

© 2010, Donald E. Heller© 2010, Donald E. Heller 44Source: OECD Table C2.1

Tertiary education spending as % of GDPTertiary education spending as % of GDP

3.5%1995 2000 2006

2.5%

3.0%

1.5%

2.0%

0.5%

1.0%

0.0%

Aust

ralia

Aust

riaBe

lgiu

mCa

nada

h Re

publ

icD

enm

ark

Finl

and

Fran

ceG

erm

any

Gre

ece

Hun

gary

Icel

and

Irel

and

Ital

yJa

pan

Kore

aM

exic

oet

herla

nds

w Z

eala

ndN

orw

ayPo

land

Port

ugal

k Re

publ

icSp

ain

Swed

enw

itzer

land

Turk

eyKi

ngdo

mte

d St

ates

OEC

D a

ve.

Czec

h

Ne

New

Slov

ak Sw

Uni

ted

Uni

t O

© 2010, Donald E. Heller© 2010, Donald E. Heller 55Source: OECD Table B2.1

Public and private investment in tertiary educationPublic and private investment in tertiary education

Public and private expenditures on tertiary education as % of GDP, 2006

2.5%

3.0%Private Public

1.5%

2.0%

0.5%

1.0%

0.0%

Aust

ralia

Aust

ria

Belg

ium

Cana

da

Repu

blic

Den

mar

k

Finl

and

Fran

ce

Ger

man

y

Hun

gary

Icel

and

Irel

and

Ital

y

Japa

n

Kore

a

Mex

ico

herla

nds

Zeal

and

Pola

nd

Port

ugal

Repu

blic

Spai

n

Swed

en

King

dom

d St

ates

ECD

ave

.

A

Czec

h R D G H

Net

h

New

Slov

ak R

Uni

ted

K

Uni

ted

OE

© 2010, Donald E. Heller© 2010, Donald E. Heller 66Source: OECD Table B2.4

Spending on tertiary educationSpending on tertiary education

Tertiary education spending per student, 2006 ($US PPP)

$25,000

$30,000

$15,000

$20,000OECD Average

$5,000

$10,000

$0

Aust

ralia

Aust

riaBe

lgiu

mCa

nada

*Re

publ

icD

enm

ark

Finl

and

Fran

ceG

erm

any

Hun

gary

Icel

and

Irel

and

Ital

yJa

pan

Kore

aM

exic

oth

erla

nds

w Z

eala

ndN

orw

ayPo

land

Port

ugal

Repu

blic

Spai

nSw

eden

witz

erla

ndKi

ngdo

med

Sta

tes

Czec

h D G

Net

New

Slov

ak

S wU

nite

d U

nite

© 2010, Donald E. Heller© 2010, Donald E. Heller 77*Author’s estimate from StatCan, OECD Source: OECD Table B1.1a

Relationship between spending and attainmentRelationship between spending and attainment

CanadaJapan

60

AustraliaFrance

Ireland

p

Norway

050

07 (a

ge 2

5-34

)

AustraliaDenmark

FinlandFrance

Netherlands

Poland

SpainSweden

SwitzerlandUnited Kingdom

United States

3040

ycr

eden

tial,

200

Austria

GermanyHungary

Italy MexicoPortugal

Slovak Republic

203

% w

ith te

rtiar

y

OECD ave.attainment

r = .73Czech Republic

Slovak Republic

Turkey

10

0.5 1.0 1.5 2.0 2.5

OECD ave.spending

© 2010, Donald E. Heller© 2010, Donald E. Heller 88Source: OECD Tables B2.1 & A1.3a

Tertiary spending as % of GDP, 1995

Tuition chargesTuition charges

$25 000

Average university tuition fee charges, 2006 ($US PPP)

$20,517

$20,000

$25,000

Public Private

$7 902 $8,519$10,000

$15,000

$4,035

$825

$3,705

$0 $0 $0 $0 $0$1,123

$4,279$4,717

$1,707$2,765

$1,180 $844$0

$4,694$5,666

$7,902

$0

$3,866

$6,695

$ ,

$5,000

$0 $0 $0 $0 $0 $0$0$0

Aust

ralia

Aust

ria

Cana

da

Repu

blic

Den

mar

k

Finl

and

Icel

and

Irel

and

Ital

y

Japa

n

Kore

a

herla

nds

Zeal

and

Port

ugal

Spai

n

Swed

en

King

dom

ed S

tate

s

A

Czec

h D

Net

New

Uni

ted

K

Uni

te

© 2010, Donald E. Heller© 2010, Donald E. Heller 99Source: OECD Table B5.1a

Public funding for higher education in three countriesPublic funding for higher education in three countries

U.S. England Canada

Public/private funding mix (2006)

34%/66% 65%/35% (UK) 53%/47%(2006)

Sources of public funding 51 1 11

F tti th it Mi d P bli P bliFee-setting authority Mixed Public Public

Loan providers Multiple 1 1+

Loan type Mortgage ICR Mortgage

GrantsFederal/state/institutional

Federal/institutional

Federal/Provincialinstitutionalinstitutional


The challenges of affecting access and attainment through public policy leversare quite different in the three countries

ChallengesChallenges

Continuing demands for public support of higher educationContinuing demands for public support of higher educationExpansion Expansion –– access access andand completioncompletionMaintaining (or increasing) qualityMaintaining (or increasing) quality

The role of private fundingThe role of private fundingThe role of private fundingThe role of private fundingIncreasing tuition feesIncreasing tuition feesPrivate, philanthropic supportPrivate, philanthropic supportBusiness supportBusiness support

Ensuring equityEnsuring equityFinancial academic and cultural barriersFinancial academic and cultural barriersFinancial, academic, and cultural barriersFinancial, academic, and cultural barriers

Managing the migration of studentsManaging the migration of studentsSpacesSpacesRevenue implicationsRevenue implicationsQualityQuality


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Guardian 2010